* * PROPERTY AND CASUALTY COMPANIES ASSOCIATION EDITION

Transcription

1 * * PROPERTY AND CASUALTY COMPANIES ASSOCIATION EDITION ANNUAL STATEMENT For the Year Ended December, 06 OF THE CONDITION AND AFFAIRS OF THE Maison Insurance Company NAIC Group Code 06, 06 NAIC Company Code 4568 Employer s ID Number (Current Period) (Prior Period) Organized under the Laws of Louisiana, State of Domicile or Port of Entry Louisiana Country of Domicile United States Incorporated/Organized 0/0/0 Commenced Business /6/0 Statutory Home Office 900 Bluebonnet Centre Blvd., Suite 50, Baton Rouge, LA, US (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 900 Bluebonnet Centre Blvd., Suite 50 Baton Rouge, LA, US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address 900 Bluebonnet Centre Blvd, Suite 50, Baton Rouge, LA, US (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 900 Bluebonnet Centre Blvd., Ste.50 Baton Rouge, LA, US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address Statutory Statement Contact CYNTHIA JEAN PROSSER (Name) (Area Code) (Telephone Number) (Extension) cprosser@maisonins.com ( Address) (Fax Number) OFFICERS Name Title Name Title DOUGLAS NEIL RAUCY, President & CEO JOHN STEVEN HILL, Vice President, CFO, Treasurer JOHN STEVEN HILL, Secretary DEAN EDWARD STROUD, Vice President & CUO OTHER OFFICERS BRIAN DREW BOTTJER, Controller and Assistant Secretary SUZANNE MORROW #, Vice President, Sales & Marketing DIRECTORS OR TRUSTEES JOHN STEVEN HILL DOUGLAS NEIL RAUCY DEAN EDWARD STROUD BRIAN DREW BOTTJER SUZANNE MORROW # State of County of FLORIDA HILLSBOROUGH ss The officers of this reporting entity, being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: () state law may differ; or, () that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement. DOUGLAS NEIL RAUCY JOHN STEVEN HILL JOHN STEVEN HILL President & CEO Vice President, CFO, Treasurer Secretary a. Is this an original filing? Yes [ X ] No [ ] Subscribed and sworn to before me b. If no: this day of,. State the amendment number. Date filed. Number of pages attached

2 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company ASSETS Current Year Prior Year 4 Assets Nonadmitted Assets Net Admitted Assets (Cols. - ) Net Admitted Assets. Bonds (Schedule D) 6,79,70 6,79,70 0,,6. Stocks (Schedule D):. Preferred stocks Common stocks,6,000,6, Mortgage loans on real estate (Schedule B):. First liens 0 0. Other than first liens Real estate (Schedule A): 4. Properties occupied by the company (less $ encumbrances) Properties held for the production of income (less $ encumbrances) Properties held for sale (less $ encumbrances) Cash ($ 9,47,06, Schedule E-Part ), cash equivalents ($ 0, Schedule E-Part ) and short-term investments ($ 94,96, Schedule DA) 9,567,67 9,567,67 9,68,58 6. Contract loans (including $ premium notes) Derivatives (Schedule DB) Other invested assets (Schedule BA) 505, 505, 47,68 9. Receivables for securities Securities lending reinvested collateral assets (Schedule DL) 0 0. Aggregate write-ins for invested assets Subtotals, cash and invested assets (Lines to ) 48,000,9 0 48,000,9 40,6,498. Title plants less $ charged off (for Title insurers only) Investment income due and accrued 6,955 6,955 76,7 5. Premiums and considerations: 5. Uncollected premiums and agents balances in the course of collection 84,8 8,4 796,57 6, Deferred premiums, agents balances and installments booked but deferred and not yet due (including $ earned but unbilled premiums),976,080,976,080,60, Accrued retrospective premiums ($ ) and contracts subject to redetermination ($ ) Reinsurance: 6. Amounts recoverable from reinsurers 444, 444, 0 6. Funds held by or deposited with reinsured companies 500, ,000 75, Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon,05,056,05, Net deferred tax asset,806,654,806,654,69,90 9. Guaranty funds receivable or on deposit Electronic data processing equipment and software 0 0. Furniture and equipment, including health care delivery assets ($ ) 0 0. Net adjustment in assets and liabilities due to foreign exchange rates 0 0. Receivables from parent, subsidiaries and affiliates Health care ($ ) and other amounts receivable Aggregate write-ins for other-than-invested assets 847,04 847, Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines to 5) 55,54, 885,545 54,655,677 45,56,46 7. From Separate Accounts, Segregated Accounts and Protected Cell Accounts Total (Lines 6 and 7) 55,54, 885,545 54,655,677 45,56,46 DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) BSA Receivable 684, , Prepaid Expense 6,804 6, Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) 847,04 847,04 0 0

3 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company LIABILITIES, SURPLUS AND OTHER FUNDS Current Year Prior Year. Losses (Part A, Line 5, Column 8),6,8,674,64. Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part, Column 6) 0. Loss adjustment expenses (Part A, Line 5, Column 9) 75,98 9,9 4. Commissions payable, contingent commissions and other similar charges 0 5. Other expenses (excluding taxes, licenses and fees) 56,578 90, Taxes, licenses and fees (excluding federal and foreign income taxes) 758,85 747, 7. Current federal and foreign income taxes (including $ on realized capital gains (losses)) 85, Net deferred tax liability 0 8. Borrowed money $ and interest thereon $ 0 9. Unearned premiums (Part A, Line 8, Column 5) (after deducting unearned premiums for ceded reinsurance of $ 4,847,05 and including warranty reserves of $ 0 and accrued accident and health experience rating refunds including $ for medical loss ratio rebate per the Public Health Service Act) 0,974,44 0,66, Advance premium,7, ,807. Dividends declared and unpaid:. Stockholders 0. Policyholders 0. Ceded reinsurance premiums payable (net of ceding commissions) 5,9,954,5,5. Funds held by company under reinsurance treaties (Schedule F, Part, Column 9) 7, Amounts withheld or retained by company for account of others 8,44 0, Remittances and items not allocated 5 6. Provision for reinsurance (including $ certified) (Schedule F, Part 8), Net adjustments in assets and liabilities due to foreign exchange rates 0 8. Drafts outstanding 0 9. Payable to parent, subsidiaries and affiliates,94,4 70, Derivatives 0 0. Payable for securities 0. Payable for securities lending 0. Liability for amounts held under uninsured plans 0 4. Capital notes $ and interest thereon $ 0 5. Aggregate write-ins for liabilities Total liabilities excluding protected cell liabilities (Lines through 5) 4,80,0 8,68, 7. Protected cell liabilities 0 8. Total liabilities (Lines 6 and 7) 4,80,0 8,68, 9. Aggregate write-ins for special surplus funds Common capital stock,500,000,500,000. Preferred capital stock 0. Aggregate write-ins for other-than-special surplus funds 0 0. Surplus notes 6,050,000,500, Gross paid in and contributed surplus 9,450,000 9,450, Unassigned funds (surplus),85,57,068,5 6. Less treasury stock, at cost: 6. shares common (value included in Line 0 $ ) 0 6. shares preferred (value included in Line $ ) 0 7. Surplus as regards policyholders (Lines 9 to 5, less 6) (Page 4, Line 9) 9,85,57 6,58,5 8. Totals (Page, Line 8, Col. ) 54,655,677 45,56,46 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 90 through 90 plus 998) (Line 9 above) Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) 0 0

4 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company STATEMENT OF INCOME Current Year Prior Year UNDERWRITING INCOME. Premiums earned (Part, Line 5, Column 4) 0,448,4 5,94,49 DEDUCTIONS:. Losses incurred (Part, Line 5, Column 7) 5,7,7 8,86,407. Loss adjustment expenses incurred (Part, Line 5, Column ),9,46,9,0 4. Other underwriting expenses incurred (Part, Line 5, Column ) 5,755,566,64,95 5. Aggregate write-ins for underwriting deductions Total underwriting deductions (Lines through 5),,46,697,5 7. Net income of protected cells 0 8. Net underwriting gain (loss) (Line minus Line 6 plus Line 7) (,87,84),6,887 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 7) 96,80 09, Net realized capital gains (losses) less capital gains tax of $,09 (Exhibit of Capital Gains (Losses)) 6,9 (4). Net investment gain (loss) (Lines 9 + 0) 0,0 09,504 OTHER INCOME. Net gain (loss) from agents' or premium balances charged off (amount recovered $ amount charged off $,85 ) (,85),70. Finance and service charges not included in premiums 9, 80,76 4. Aggregate write-ins for miscellaneous income Total other income (Lines through 4) 80,57 8,47 6. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines ) (,489,85),58,88 7. Dividends to policyholders 0 8. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 6 minus Line 7) (,489,85),58,88 9. Federal and foreign income taxes incurred (54,0),6,05 0. Net income (Line 8 minus Line 9) (to Line ) (965,6),40,5 CAPITAL AND SURPLUS ACCOUNT. Surplus as regards policyholders, December prior year (Page 4, Line 9, Column ) 6,58,5 4,,840. Net income (from Line 0) (965,6),40,5. Net transfers (to) from Protected Cell accounts 0 4. Change in net unrealized capital gains or (losses) less capital gains tax of $ 45,67 88, Change in net unrealized foreign exchange capital gain (loss) 0 6. Change in net deferred income tax 58,45 6, 7. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 8, Col. ) (5,66) (0,459) 8. Change in provision for reinsurance (Page, Line 6, Column minus Column ) (,905) 0 9. Change in surplus notes 4,550, , Surplus (contributed to) withdrawn from protected cells 0. Cumulative effect of changes in accounting principles 0. Capital changes:. Paid in 0. Transferred from surplus (Stock Dividend) 0. Transferred to surplus 0. Surplus adjustments:. Paid in 0. Transferred to capital (Stock Dividend) 0. Transferred from capital 0 4. Net remittances from or (to) Home Office 0 5. Dividends to stockholders 0 6. Change in treasury stock (Page, Lines 6. and 6., Column minus Column ) Aggregate write-ins for gains and losses in surplus Change in surplus as regards policyholders for the year (Lines through 7),7,4,05,75 9. Surplus as regards policyholders, December current year (Line plus Line 8) (Page, Line 7) 9,85,57 6,58,5 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 050 through 050 plus 0598) (Line 5 above) Summary of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) Summary of remaining write-ins for Line 7 from overflow page Totals (Lines 70 through 70 plus 798) (Line 7 above) 0 0 4

5 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company CASH FLOW Current Year Prior Year Cash from Operations. Premiums collected net of reinsurance,84,7,740,894. Net investment income 77,076 5,505. Miscellaneous income 80,57 8,47 4. Total (Lines through ),74,4 4,074,86 5. Benefit and loss related payments 4,879,908 7,895,0 6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts Commissions, expenses paid and aggregate write-ins for deductions 6,476,88 4,59,4 8. Dividends paid to policyholders Federal and foreign income taxes paid (recovered) net of $ tax on capital gains (losses) 580,000,90, Total (Lines 5 through 9),96,96 4,677,76. Net cash from operations (Line 4 minus Line 0),806,8 9,97,06 Cash from Investments. Proceeds from investments sold, matured or repaid:. Bonds 4,8,988,407,76. Stocks 0 0. Mortgage loans Real estate Other invested assets Net gains or (losses) on cash, cash equivalents and short-term investments Miscellaneous proceeds Total investment proceeds (Lines. to.7) 4,8,988,408,40. Cost of investments acquired (long-term only):. Bonds 0,8,04,06,8. Stocks,000, Mortgage loans Real estate Other invested assets 57,54 47,68.6 Miscellaneous applications Total investments acquired (Lines. to.6),068,60,554,69 4. Net increase (decrease) in contract loans and premium notes Net cash from investments (Line.8 minus Line.7 minus Line 4) (7,89,6) (0,46,55) Cash from Financing and Miscellaneous Sources 6. Cash provided (applied): 6. Surplus notes, capital notes 4,550, , Capital and paid in surplus, less treasury stock Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities Dividends to stockholders Other cash provided (applied),57,5 (5,975) 7. Net cash from financing and miscellaneous sources (Lines 6. to 6.4 minus Line 6.5 plus Line 6.6) 5,907,5 7,05 RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8. Net change in cash, cash equivalents and short-term investments (Line, plus Lines 5 and 7) (6,5) (4,46) 9. Cash, cash equivalents and short-term investments: 9. Beginning of year 9,68,58 0,05,98 9. End of year (Line 8 plus Line 9.) 9,567,67 9,68,58 5

6 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT Line of Business PART - PREMIUMS EARNED Net Premiums Written per Column 6, Part B Unearned Premiums Dec. Prior Year - per Col., Last Year s Part Unearned Premiums Dec. Current Year - per Col. 5 Part A 4 Premiums Earned During Year (Cols. + - ). Fire 9,85 88, 99,84 8,. Allied lines 9,0,40 6,50,98 6,4,488 9,79,850. Farmowners multiple peril Homeowners multiple peril,49,8 4,07,69 4,6,57 0,887,49 5. Commercial multiple peril Mortgage guaranty Ocean marine Inland marine Financial guaranty Medical professional liability-occurrence Medical professional liability-claims-made Earthquake Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability-occurrence Other liability-claims-made Excess workers compensation Products liability-occurrence Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty Reinsurance-nonproportional assumed property Reinsurance-nonproportional assumed liability Reinsurance-nonproportional assumed financial lines Aggregate write-ins for other lines of business TOTALS 0,785,986 0,66,869 0,974,44 0,448,4 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above)

7 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company Line of Business UNDERWRITING AND INVESTMENT EXHIBIT PART A - RECAPITULATION OF ALL PREMIUMS Amount Unearned (Running One Year or Less from Date of Policy) (a) Amount Unearned (Running More Than One Year from Date of Policy) (a) Earned but Unbilled Premium 4 Reserve for Rate Credits and Retrospective Adjustments Based on Experience 5 Total Reserve for Unearned Premiums Cols Fire 99,84 99,84. Allied lines 6,4,488 6,4,488. Farmowners multiple peril 0 4. Homeowners multiple peril 4,6,57 4,6,57 5. Commercial multiple peril 0 6. Mortgage guaranty 0 8. Ocean marine 0 9. Inland marine 0 0. Financial guaranty 0. Medical professional liability-occurrence 0. Medical professional liability-claims-made 0. Earthquake 0. Group accident and health 0 4. Credit accident and health (group and individual) 0 5. Other accident and health 0 6. Workers' compensation 0 7. Other liability-occurrence 0 7. Other liability-claims-made 0 7. Excess workers compensation 0 8. Products liability-occurrence 0 8. Products liability-claims-made 0 9.,9.Private passenger auto liability 0 9.,9.4Commercial auto liability 0. Auto physical damage 0. Aircraft (all perils) 0. Fidelity 0 4. Surety 0 6. Burglary and theft 0 7. Boiler and machinery 0 8. Credit 0 9. International 0 0. Warranty 0. Reinsurance-nonproportional assumed property 0. Reinsurance-nonproportional assumed liability 0. Reinsurance-nonproportional assumed financial lines 0 4. Aggregate write-ins for other lines of business TOTALS 0,974, ,974,44 6. Accrued retrospective premiums based on experience 7. Earned but unbilled premiums 8. Balance (Sum of Lines 5 through 7) 0,974,44 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) (a) State here basis of computation used in each case. 7

8 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART B - PREMIUMS WRITTEN Line of Business Reinsurance Assumed Reinsurance Ceded From From To To Affiliates Non-Affiliates Affiliates Non-Affiliates Direct Business (a) Net Premiums Written Cols Fire 9, ,85. Allied lines 6,8,877,6,057 8,47,54 9,0,40. Farmowners multiple peril 0 4. Homeowners multiple peril,65,5,,0,49,8 5. Commercial multiple peril 0 6. Mortgage guaranty 0 8. Ocean marine 0 9. Inland marine 0 0. Financial guaranty 0. Medical professional liability-occurrence 0. Medical professional liability-claims-made 0. Earthquake 0. Group accident and health 0 4. Credit accident and health (group and individual) 0 5. Other accident and health 0 6. Workers' compensation 0 7. Other liability-occurrence 0 7. Other liability-claims-made 0 7. Excess workers compensation 0 8. Products liability-occurrence 0 8. Products liability-claimsmade 0 9.,9. Private passenger auto liability 0 9.,9.4 Commercial auto liability 0. Auto physical damage 0. Aircraft (all perils) 0. Fidelity 0 4. Surety 0 6. Burglary and theft 0 7. Boiler and machinery 0 8. Credit 0 9. International 0 0. Warranty 0. Reinsurancenonproportional assumed property XXX 0. Reinsurancenonproportional assumed liability XXX 0. Reinsurancenonproportional assumed financial lines XXX 0 4. Aggregate write-ins for other lines of business TOTALS 49,99,6 0,6, ,54,87 0,785,986 DETAILS OF WRITE-INS Sum. of remaining writeins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) (a) Does the company s direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes:. The amount of such installment premiums $. Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $ 8

9 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company 9 UNDERWRITING AND INVESTMENT EXHIBIT PART - LOSSES PAID AND INCURRED Losses Paid Less Salvage Net Losses Unpaid Net Losses Losses Incurred Reinsurance Net Payments Current Year Unpaid Current Year Recovered (Cols. + - ) (Part A, Col. 8) Prior Year (Cols ) Percentage of Losses Incurred (Col. 7, Part ) to Premiums Earned (Col. 4, Part ) Reinsurance Line of Business Direct Business Assumed. Fire 89,06 89, , Allied lines 709,85,07,700,65,776 46, , 89,87 97,8 4.. Farmowners multiple peril Homeowners multiple peril,575,45 7,475,406 4,099,89,70,848,485,55 4,785, Commercial multiple peril Mortgage guaranty Ocean marine Inland marine Financial guaranty Medical professional liability-occurrence Medical professional liability-claims-made Earthquake Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability-occurrence Other liability-claims-made Excess workers compensation Products liability-occurrence Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty Reinsurance-nonproportional assumed property XXX Reinsurance-nonproportional assumed liability XXX Reinsurance-nonproportional assumed financial lines XXX Aggregate write-ins for other lines of business TOTALS,474,60,07,700 0,,8 4,45,678,6,8,674,64 5,7, DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through ) (Line 4 above)

10 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Net Losses Excl. Incurred But Not Reported (Cols. + - ) Net Losses Unpaid (Cols ) Net Unpaid Loss Adjustment Expenses Reinsurance Deduct Reinsurance Reinsurance Reinsurance Line of Business Direct Assumed Recoverable Direct Assumed Ceded. Fire 0 0. Allied lines 6,6 55,0 665,005, 69, ,000 40, , 54,99. Farmowners multiple peril Homeowners multiple peril,5,85 454,7,068,848,847,000 0,745,000,70,848 57,04 5. Commercial multiple peril Mortgage guaranty Ocean marine Inland marine Financial guaranty 0 0. Medical professional liability-occurrence 0 0. Medical professional liability-claims-made 0 0. Earthquake 0 0. Group accident and health 0 (a) 0 4. Credit accident and health (group and individual) Other accident and health 0 (a) 0 6. Workers' compensation Other liability-occurrence Other liability-claims-made Excess workers compensation Products liability-occurrence Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability 0 0. Auto physical damage 0 0. Aircraft (all perils) 0 0. Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty 0 0. Reinsurance-nonproportional assumed property XXX 0 XXX 0. Reinsurance-nonproportional assumed liability XXX 0 XXX 0. Reinsurance-nonproportional assumed financial lines XXX 0 XXX 0 4. Aggregate write-ins for other lines of business TOTALS,684, 55,0,9,4,00,8,96, ,000,55,000,6,8 75,98 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through ) (Line 4 above) (a) Including $ for present value of life indemnity claims.

11 . Claim adjustment services: ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART - EXPENSES Loss Adjustment Expenses Other Underwriting Expenses Investment Expenses. Direct,8,775,8,775. Reinsurance assumed 0,090 0,090. Reinsurance ceded,099,40,099,40.4 Net claim adjustment services ( ),9,46 0 0,9,46. Commission and brokerage:. Direct, excluding contingent 6,80,650 6,80,650. Reinsurance assumed, excluding contingent 65,995 65,995. Reinsurance ceded, excluding contingent 0.4 Contingent-direct 0.5 Contingent-reinsurance assumed 0.6 Contingent-reinsurance ceded 0.7 Policy and membership fees 0.8 Net commission and brokerage ( ) 0 7,68, ,68,645. Allowances to manager and agents,704,8,704,8 4. Advertising 69,096 69, Boards, bureaus and associations 74,458 74, Surveys and underwriting reports 84,876 84, Audit of assureds' records 0 8. Salary and related items: 8. Salaries,744,9,744,9 8. Payroll taxes 47,7 47,7 9. Employee relations and welfare 44,087 44, Insurance 76, 76,. Directors' fees 0. Travel and travel items 56,967 56,967. Rent and rent items 5,68 5,68 4. Equipment 48,09 48,09 5. Cost or depreciation of EDP equipment and software 08,40 08,40 6. Printing and stationery 5,75 5,75 7. Postage, telephone and telegraph, exchange and express,005, Legal and auditing 09,49 09,49 9. Totals (Lines to 8) 0 7,8, ,8, Taxes, licenses and fees: 0. State and local insurance taxes deducting guaranty association credits of $ 69,47 69,47 0. Insurance department licenses and fees 40,786 40, Gross guaranty association assessments All other (excluding federal and foreign income and real estate) Total taxes, licenses and fees ( ) 0,0,59 0,0,59. Real estate expenses 0. Real estate taxes 0. Reimbursements by uninsured plans 0 4. Aggregate write-ins for miscellaneous expenses 0 80,896 44,9 45,88 5. Total expenses incurred,9,46 5,755,566 44,9 (a) 6,99,4 6. Less unpaid expenses-current year 75,98 94,76,640, Add unpaid expenses-prior year 9,9 88,08 0,68, Amounts receivable relating to uninsured plans, prior year Amounts receivable relating to uninsured plans, current year 0 0. TOTAL EXPENSES PAID (Lines ) 797,40 5,678,886 44,9 6,50,680 DETAILS OF WRITE-INS 40. Professional Services,4,78 44,9,69, BSA and Other (94,9) (94,9) 40. Fines Summary of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) 0 80,896 44,9 45,88 (a) Includes management fees of $ 4,6,0 to affiliates and $ to non-affiliates. 4 Total

12 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company EXHIBIT OF NET INVESTMENT INCOME Collected During Year Earned During Year. U.S. Government bonds (a) 4,4 6,4. Bonds exempt from U.S. tax (a). Other bonds (unaffiliated) (a) 88,75 4,604. Bonds of affiliates (a) 0. Preferred stocks (unaffiliated) (b) 0. Preferred stocks of affiliates (b) 0. Common stocks (unaffiliated) 0. Common stocks of affiliates 0. Mortgage loans (c) 4. Real estate (d) 5. Contract loans 6. Cash, cash equivalents and short-term investments (e) 4,56 5,8 7. Derivative instruments (f) 8. Other invested assets 9. Aggregate write-ins for investment income Total gross investment income 454,4 498,740. Investment expenses (g) 44,9. Investment taxes, licenses and fees, excluding federal income taxes (g). Interest expense (h) 57, Depreciation on real estate and other invested assets (i) 5. Aggregate write-ins for deductions from investment income 0 6. Total deductions (Lines through 5) 0,97 7. Net investment income (Line 0 minus Line 6) 96,80 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 090 through 090 plus 0998) (Line 9 above) Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) 0 (a) Includes $,80 accrual of discount less $,796 amortization of premium and less $,98 paid for accrued interest on purchases. (b) Includes $ accrual of discount less $ amortization of premium and less $ 0 paid for accrued dividends on purchases. (c) Includes $ 0 accrual of discount less $ 0 amortization of premium and less $ paid for accrued interest on purchases. (d) Includes $ for company s occupancy of its own buildings; and excludes $ interest on encumbrances. (e) Includes $ accrual of discount less $ amortization of premium and less $ paid for accrued interest on purchases. (f) Includes $ accrual of discount less $ amortization of premium. (g) Includes $ 44,9 investment expenses and $ investment taxes, licenses and fees, excluding federal income taxes, attributable to segregated and Separate Accounts. (h) Includes $ 57,545 interest on surplus notes and $ interest on capital notes. (i) Includes $ depreciation on real estate and $ depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Realized Gain (Loss) On Sales or Maturity Other Realized Adjustments Total Realized Capital Gain (Loss) (Columns + ) 4 Change in Unrealized Capital Gain (Loss) 5 Change in Unrealized Foreign Exchange Capital Gain (Loss). U.S. Government bonds 0. Bonds exempt from U.S. tax 0. Other bonds (unaffiliated) 9,48 9,48 (,669). Bonds of affiliates Preferred stocks (unaffiliated) Preferred stocks of affiliates Common stocks (unaffiliated) , Common stocks of affiliates Mortgage loans Real estate Contract loans 0 6. Cash, cash equivalents and short-term investments Derivative instruments 0 8. Other invested assets Aggregate write-ins for capital gains (losses) Total capital gains (losses) 9,48 0 9,48 4, 0 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 090 through 090 plus 0998) (Line 9 above)

13 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Maison Insurance Company EXHIBIT OF NONADMITTED ASSETS Current Year Total Nonadmitted Assets Prior Year Total Nonadmitted Assets Change in Total Nonadmitted Assets (Col. - Col. ). Bonds (Schedule D) Stocks (Schedule D):. Preferred stocks Common stocks Mortgage loans on real estate (Schedule B):. First liens Other than first liens Real estate (Schedule A): 4. Properties occupied by the company Properties held for the production of income Properties held for sale Cash (Schedule E-Part ), cash equivalents (Schedule E-Part ) and short-term investments (Schedule DA) Contract loans Derivatives (Schedule DB) Other invested assets (Schedule BA) Receivables for securities Securities lending reinvested collateral assets (Schedule DL) Aggregate write-ins for invested assets Subtotals, cash and invested assets (Lines to ) Title plants (for Title insurers only) Investment income due and accrued Premiums and considerations: 5. Uncollected premiums and agents balances in the course of collection 8,4 468 (7,77) 5. Deferred premiums, agents balances and installments booked but deferred and not yet due Accrued retrospective premiums and contracts subject to redetermination Reinsurance: 6. Amounts recoverable from reinsurers Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon Net deferred tax asset Guaranty funds receivable or on deposit Electronic data processing equipment and software Furniture and equipment, including health care delivery assets Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates Health care and other amounts receivable Aggregate write-ins for other-than-invested assets 847,0 7,44 (47,889) 6. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines to 5) 885,544 7,88 (5,66) 7. From Separate Accounts, Segregated Accounts and Protected Cell Accounts Total (Lines 6 and 7) 885,544 7,88 (5,66) DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) BSA Receivable 684,500 8,888 (445,6) 50. Prepaid Expenses 6,80 4,56 (8,77) Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) 847,0 7,44 (47,889)

14 Annual Statement for the year 06 of the Maison Insurance Company Note ² Summary of Significant Accounting Policies NOTES TO FINANCIAL STATEMENTS A. Accounting Practices, Impact of NAIC/State Differences The accompanying financial statements of Maison Insurance Company (the Company) have been prepared on the basis of accounting practices prescribed or permitted by the Louisiana Department of Insurance (LDI). The state of Louisiana requires insurance companies domiciled in the state to prepare their statutory financial statements in accordance with the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual subject to any deviations prescribed or permitted by the LDI. The accompanying financial statements do not contain any deviations prescribed or permitted by the LDI. Net Income: Maison Insurance Company State Basis State Prescribed Practices that increase/(decrease) NAIC SAP: State Permitted Practices that increase/(decrease) NAIC SAP: 4 Surplus: 5 NAIC SAP (++) Maison Insurance Company State Basis 6 State Prescribed Practices that increase/(decrease) NAIC SAP: 7 State Permitted Practices that increase/(decrease) NAIC SAP: 8 NAIC SAP (5+6+7) State of Domicile LA $ (965,6) $,40,5 LA $ $ LA $ $ LA $ (965,6) $,40,5 LA $9,85,57 $6,58,5 LA $ $ LA $ $ LA $9,85,57 $6,58,5 B. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in these financial statements and notes. Actual results could differ from these estimates. C. Accounting Policies Direct premium is recognized on a pro rata basis over the term of the respective policy contract. Unearned premiums represent the portion of premium written that is applicable to the unexpired term of policies in force. Ceded premiums are charged to income over the applicable term of the various reinsurance contracts the Company has in place, also on a daily, pro rata basis. Premiums receivable are charged off when specific balances are determined to be uncollectible. Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, policy processing costs, and premium taxes are charged to operations as incurred. As the Company pays an affiliated managing JHQHUDODJHQWIRUWKHPDQDJHPHQWDQGDGPLQLVWUDWLRQRIDVLJQLILFDQWSDUWRIWKH&RPSDQ\ VEXVLQHVVWKH&RPSDQ\KDV allocated these costs to various expense classification items in preparing the Underwriting and Investment Exhibit, Part ± Expenses. The Company estimates these expenses based upon a pro- rata allocation of the expenses borne by the holding FRPSDQ\V\VWHPRQDFRQVROLGDWHGEDVLVZKLFKLQFOXGHVQRWRQO\WKH&RPSDQ\EXWDOVRWKH&RPSDQ\ VPDQDJLQJJHQHUDO agent, and holding company (47 Property Insurance Holdings, Inc.). $Q\H[FHVVDPRXQWSDLGWRWKH&RPSDQ\ VPDQDJLQJ general agent, above amounts allocated on a pro- rata basis, are charged to line - allowances to manager and agents on the Underwriting and Investment Exhibit. Investment income earned consists of interest earned on the CoPSDQ\ VIL[HGLQFRPHSRUWIROLRQHWRILQYHVWPHQWH[SHQVHV incurred and approved surplus note interest expense paid. Interest is recognized on an accrual basis. Net realized capital gains (losses) are recognized on a specific identification basis when securities are sold, redeemed, or otherwise disposed. Realized capital losses may include write- downs for impairments considered to be other- than- temporary. Invested assets are valued according to statutory requirements and the basis of valuation adopted by the NAIC. Other income consists of service fees collected on installment premiums which are recognized as income upon receipt of the related installment payment. Any customer payment received is first applied to any service charge due, and the remaining amount is applied toward any premium due. Certain assets designated as non- admitted (such as premiums receivable over 90 days and prepaid expenses) are excluded from the statutory balance sheet, and changes to these amounts are charged or credited directly to unassigned surplus. 4

15 Annual Statement for the year 06 of the Maison Insurance Company NOTES TO FINANCIAL STATEMENTS The provision for federal income taxes is comprised of both current and deferred income taxes. Deferred federal income taxes arise from changes during the year in cumulative temporary differences between the statutory basis of accounting for assets and OLDELOLWLHVYHUVXVZKDWLVUHSRUWHGRQWKH&RPSDQ\ VIHGHUDOWD[UHWXUQIRUWKRVHDVVHWVDQGOLDELOLWLHV7KHVHWHPSRUDU\ differences are recognized in accordance with Statement of Statutory Accounting Principles (SSAP) No. 0, Income Taxes. In addition, the Company uses the following accounting policies: () Short- term investments are stated at amortized value using the interest method. Non- investment grade short- term investments are stated at amortized value or fair value, whichever is lower. () Investment grade non- loan- backed bonds with NAIC designations or are stated at amortized value using the interest method. Non- investment grade non- loan- backed bonds with NAIC designations of through 6 are stated at amortized value or fair value, whichever is lower. () Common stock is stated at estimated fair value. Impairment is charged to the statement of operations if the fair value of the instrument falls below its cost and the decline is considered other- than- temporary. Unrealized gains and losses are credited or charged to surplus, net of tax, until sold or an other- than- temporary impairment is recognized, at which point the cumulative unrealized gains or losses are transferred to investment income. (4) The Company has no investments in preferred stocks. (5) The Company has no investments in mortgage loans. (6) The Company has no investments in loan backed and structured securities. (7) The Company has no investments in subsidiaries. (8) Limited liability investments are stated under the cost method of accounting which approximates their fair value. (9) The Company has no investments in derivative instruments. (0) The Company utilizes anticipated investment income as a factor in the premium deficiency calculation. () Property- casualty reserves are established for loss and LAE and include estimates of both reported and unreported claims incurred and related expenses. The reserves are regularly adjusted based upon experience. In determining loss and LAE reserves, the Company continually reviews its overall reserve position, its reserving techniques, and its reinsurance. These reserves represent the estimated ultimate cost of all incurred losses and LAE net of reinsurance. Since the reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effect of changes in such estimated reserves are included in net income in the period in which the estimates are changed. Such changes may be material to net income and could occur in a future period. The Company does not provide coverage for toxic waste cleanup and asbestos related illnesses or other environmental remediation exposures. () The Company has not modified its accounting policy regarding the capitalization of prepaid expenses and fixed assets from the prior period. () as the company does not write major medical insurance with prescription drug coverage. Note ² Accounting Changes and Correction of Errors. Note ² Business Combinations and Goodwill A, B and C not applicable Note 4 ² Discontinued Operations Note 5 ² Investments A. Mortgage Loans B. Troubled Debt Restructuring for Creditors C. Reverse Mortgages D. Loan- Backed and Structured Securities () ± () not applicable 4.

16 Annual Statement for the year 06 of the Maison Insurance Company NOTES TO FINANCIAL STATEMENTS (4) The table below summarizes all securities (fair value is less than cost or amortized cost) for which an other- thantemporary impairment has not been recognized in earnings as a realized loss (including securities with a recognized other- than- temporary impairment for non- interest related declines when a non- recognized interest related impairment remains), and discloses: a.) The aggregate amount of unrealized losses, and b.) The aggregate related fair value of securities with unrealized losses. The disclosures in (a) and (b) above are segregated by those securities that have been in a continuous unrealized loss position for less than months and those that have been in a continuous loss position for months or longer using fair values determined in accordance with SSAP No. 7. At December, 06 Estimated Fair Value Unrealized Losses Less than months $ 9,486,0 $ (,408) months or longer $ 460,9 $ (,6) (5) not applicable Total $ 9,946,595 $ (5,74) E. Repurchase Agreements and/or Securities Lending Transactions F. Write- downs for Impairments of Real Estate, Real Estate Sales, Retail Land Sales Operations and Real Estate with Participating Mortgage Loan Features G. Low Income Housing Tax Credits H. Restricted Assets () Restricted assets (including pledged) summarized by restricted asset category Gross Restricted Percentage Current Year Restricted Asset Category a. Subject to contractual obligation for which liability is not shown Total General Account (G/A) G/A Supporting S/A Restricted Assets (a) Total Separate Account (S/A) Restricted Assets S/A Assets Supporting G/A Activity (b) Total ( plus ) Total From Prior Year Increase/ (Decrease) (5 minus 6) Total Current Year Admitted Restricted Gross Restricted to Total Assets Admitted Restricted to Total Admitted Assets b. Collateral held under security lending arrangements c. Subject to repurchase agreements d. Subject to reverse repurchase agreements e. Subject to dollar repurchase agreements f. Subject to dollar reverse repurchase agreements g. Placed under option contracts h. Letter stock or securities restricted as to sale - excluding FHLB capital stock i. FHLB capital stock j. On deposit with states $,0,44 $,0,44 $,04,845 $(,4) $,0,44.85%.85% k. On deposit with other regulatory bodies 4.

17 Annual Statement for the year 06 of the Maison Insurance Company l. Pledged as collateral to FHLB (including asset backing funding agreements) m. Pledged as collateral not captured in other categories n. Other restricted assets o. Total restricted assets (a) Subset of column (b) Subset of column NOTES TO FINANCIAL STATEMENTS $,0,44 $,0,44 $,04,845 $(,4) $,0,44.85%.85% () Detail of assets pledged as collateral not captured in other categories (reported on line m above) Gross Restricted Percentage Current Year Collateral Agreement Total General Account (G/A) G/A Supporting S/A Restricted Assets (a) Total Separate Account (S/A) Restricted Assets S/A Assets Supporting G/A Activity (b) Total ( plus ) Total From Prior Year Increase/ (Decrease) (5 minus 6) Total Current Year Admitted Restricted Gross Restricted to Total Assets Admitted Restricted to Total Admitted Assets None Total (a) Subset of column (b) Subset of column () Detail of other restricted assets (reported on line n above) Current Year Gross Restricted 4 5 Percentage Other Restricted Assets Total General Account (G/A) G/A Supporting S/A Restricted Assets (a) Total Separate Account (S/A) Restricted Assets S/A Assets Supporting G/A Activity (b) Total ( plus ) None Total From Prior Year Increase/ (Decrease) (5 minus 6) Total Current Year Admitted Restricted Gross Restricted to Total Assets Admitted Restricted to Total Admitted Assets % % Total % % (a) Subset of column (b) Subset of column I. Working Capital Finance Investments J. Offsetting and Netting of Assets and Liabilities K. Structured Notes Note 6 ² Joint Ventures, Partnerships and Limited Liability Companies A and B not applicable Note 7 ² Investment Income A and B not applicable Note 8 ² Derivative Instruments 4.

18 Annual Statement for the year 06 of the Maison Insurance Company NOTES TO FINANCIAL STATEMENTS Note 9 ² Income Taxes A. Deferred Tax Asset/(Liability) () Components of Net Deferred Tax Asset/(Liability) Change a. b. c. d. e. f. g. Ordinary Capital (Col +) Total Ordinary Capital (Col 4+5) Total (Col - 4) Ordinary (Col - 5) Capital (Col 7+8) Total Gross deferred tax assets $,97,085 $ - $,97,085 $,699,45 $ 6 $,699,568 $ 7,6 $ (6) $ 7,57 Statutory valuation allowance adjustment Adjusted gross deferred tax assets (a- b) Deferred tax assets nonadmitted Subtotal net admitted deferred tax assets $ - $ - $ - $ - $ - $ - $ - $ - $ - $,97,085 $ - $,97,085 $,699,45 $ 6 $,699,568 $ 7,6 $ (6) $ 7,57 $ - $ - $ - $ - $ - $ - $ - $ - $ - $,97,085 $ - $,97,085 $,699,45 $ 6 $,699,568 $ 7,6 $ (6) $ 7,57 Deferred tax liabilities $ 74,759 $ 45,67 $ 0,4 $ 5,658 $ - $ 5,658 $ 69,0 $ 45,67 $ 4,77 Net admitted deferred tax assets/(net deferred tax liability) (e- f) $,85,6 $ (45,67) $,806,654 $,69,794 $ 6 $,69,90 $ 58,5 $(45,788) $,744 () Admission Calculation Components Change a. b. c. Federal income taxes paid in prior years recoverable through loss carrybacks Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from (a) above) after application of the threshold limitation. (The lesser of (b) and (b) below: Adjusted gross deferred tax assets expected to be realized following the balance sheet date Adjusted gross deferred tax assets allowed per limitation threshold Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities Ordinary Capital (Col +) Total Ordinary Capital (Col 4+5) Total (Col - 4) Ordinary (Col - 5) Capital (Col 7+8) Total $,099,95 $ - $,099,95 $,6,84 $ - $,699,84 $ (5,96) $ - $(5,96) $ 87,70 $ - $ 87,70 $ 87,6 $ 6 $ 87,77 $ 79,559 $ (6) $ 79,44 $ 87,70 $ - $ 87,70 $ 87,6 $ 6 $ 87,77 $ 79,559 $ (6) $ 79,44 XXXX XXXX $,704,05 XXXX XXXX $,,6 XXXX XXXX $ 480,674 $ - $ - $ - $ - $ - $ - $ - $ - $ - d. - Deferred tax assets admitted as the result of application of SSAP 0. $,97,085 $ $,97,085 $,699,45 $ 6 $,699,568 $ 7,6 $ (6) $ 7,57 (Total ((a)+(b)+c) 4.4

19 Annual Statement for the year 06 of the Maison Insurance Company NOTES TO FINANCIAL STATEMENTS () Other Admissibility Criteria a. Ratio percentage used to determine recovery period and threshold limitation amount 5% 0% b. Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in (b) above (4) Impact of Tax Planning Strategies $ 8,08,70 $ 4,84, Change Ordinary Capital Ordinary Capital (Col - ) Ordinary a. Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character, as a percentage. (Col - 4) Capital - - Adjusted Gross DTAs amount from Note 9A(c.) $,97,085 $ $,699,45 $ 6 $ 7,6 $ (6) Percentage of adjusted gross DTAs by tax character attributable to the impact 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% of tax planning strategies. Net Admitted Adjusted Gross DTAs amount from Note 9A(e.) $,97,085 $ $,699,45 $ 6 $ 7,6 $ (6) 4 Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% b. Does the company's tax planning strategies include the use of reinsurance? Yes[ ] No[X] B. Deferred Tax Liabilities Not Recognized C. Current and Deferred Income Taxes () Current Income Tax (Col ( ) Change) a. Federal $ (54,0) $,6,05 $ (,650,6) b. Foreign c. Subtotal $ (54,0) $,6,05 $ (,650,6) d. e. f. Federal income tax on net capital gains $,09 Utilization of capital loss carry- forwards Other $ $ $ $ $ $ $ $,09 g. Federal and Foreign income taxes incurred $ (50,8) $,6,05 $ (,647,8) 4.5